Prime Minister's Office
English rendering of PM’s address at the launch of Indian Post Payments Bank at Talkatora Stadium in Delhi
My colleague in the council of ministers present here on the dais Mr. Manoj Sinha Ji, CEO of the India Post Payments Bank, Secretary of Postal Department, all other colleagues from IPPB, all the dignitaries present here and ladies and gentlemen,
As Manoj Ji has informed us that at this point of time several thousand employees of the department of post and other citizens who are present there, nearly some 20 lakh people have joined us in this program through technology. Several governors and chief ministers, our colleagues in the council of ministers and ministers of the state governments, members of parliament and legislatures they all are also present there. I also welcome all of them in this event and I also bow down to all of them on this important occasion.
Our minister Mr. Manoj Sinha Ji is an IITian and because of his education at IIT he naturally connects everything with the technology that is why this program is also completely technology driven too and this initiative is also technology driven. Manoj Ji took personal interest in taking forward this thing. He received valuable inputs in this task because of his own background in technology. And it is the result of all these things that the country is getting a generous reward today. And today’s date, the first September, will be remembered in the country for beginning of a novel and unprecedented facility.
In a way the path for fulfilling our pledge of providing banking services to every poor person of the country, to every nook and corner of the country, to our tribal people living in dense forests, to people inhabiting remote islands, in a way to every Indian at their doorsteps, has been opened today through this beginning. I congratulate to the people of the country for this new service.
Brothers and sisters,
India Post Payments Bank is going to bring about a massive change in the economic and social system of the country. Our government has earlier linked millions and millions of poor families to the banks through Jan-Dhan accounts. And today we are starting the task of taking the banks to the doorsteps of villages and poor through this initiative. ‘Your Bank at Your Doorstep’, this is not just a slogan. It is our commitment, it is our dream. And steps have been taken constantly, one after another to realise this dream. Today, the branches of India Post Payments have been starting in 650 districts of the country and our postmen distributing the letters have now become mobile banks too.
On my way to the program, I visited an exhibition just a while ago, I have been told in detail about how the work will be executed and it is possible that you people too would have seen it on the screen. And when I was visiting the exhibition then the experts those who were present there, explained me all these things, at that time I had a kind of self confidence that by working with this kind of colleagues, given their dedication to the work, this novel initiative by them will certainly produce results.
And I still remember that there was a time, and as far as a postman is concerned then I believe that several things are said in our country, people’s faith in the government might have wavered but the faith in the postman has always been unwavering. Very few people would be aware about this thing. Perhaps, those who are familiar with the rural life they would be aware about this thing that when a postman was visiting one village from another then he used to carry a spear in one hand and ankle-bells were fastened to spear, and when he used to move around then the ankle-bells would ring. And when he used to move from one village to another then when the ankle-bells tied on the spear used to ring then it used to announce that he was a postman and no thief or robber would bother him no matter how difficult terrain or remote the area may be, no one would bother him no matter how risky the area may be and even if it was infested by dacoits or inhabited by thieves and robbers. Even those thieves and robbers were aware that that postman was on his way to deliver a money order for some poor mother.
Now you will find a watch in some corner in every house, however, you might be aware that there was a time when there were no watches in villages except in those few villages where perhaps some tower was located. And I have come here after leading that life so I know that earlier those old people who used to sit outside their homes they certainly used to ask, “Whether the postman has come?”
There would be hardly any old person who would not ask this thing three four times a day that whether the postman had come or not. People might think that whether they were expecting some letter, but the letter was not to come, and they did not ask for the letters, they knew that if the postman had come then this would be the time in the clock, it means the punctuality of time. Things in our social life were decided on the basis of whether the postman had come or not. Therefore in a way, the postman was linked emotionally to every family through letters and that is why the postman also had a special acceptability and respect in the society.
Today, technology has changed a lot of things in this era but the postman still has the same feeling and credibility with regard to letters as earlier. In a way, postman and post office have been an important part of our lives, our society, our films, our literature and our folklores. All of us have watched the advertisement that was screened just a while ago – Dakia Dak Laya , this kind of songs have been seen by the people as part of their lives for decades. And from now on the postman has also brought bank along with letters.
I have been to Canada several decades ago and I watched a film in Canada and I still remember name of the film – Air Mail and it was truly a hair raising film, it’s based on the postal system. And the basis of the film was the importance of letters in our lives. The film depicted an aircraft, letters were carried through the aircraft but unfortunately it crashed. However, the movie tells the entire story of collection and delivery of all the letters from the crashed aircraft after this accident. How the efforts were made to retrieve those letters, and the postmen were trying to protect those letters as efforts are being made to save a person’s life. Perhaps, this movie might still be available on YouTube, if it is there then you people must watch it. And what kind of affection, message, concerns and complaints were there in those letters. The sense of belongingness and affinity in the letters is their soul. I receive hundreds of letters even today. The workload of postal department has gone up since the time I have assumed office here. Somebody only writes a letter when he has faith in you. And thousands of letters are received every month in response to my program–Mann Ki Baat. These letters establish my direct dialogue with the people. When I read those letters then I feel that the sender of the letter is before me and he is conveying his thoughts straight away to me.
Friends, the approach of our government is in tune with the time. Necessary changes have been made in the systems as per the requirement of the future. We are not those people who are stuck in the past, we are the people who adapt with the time. We are the people who accept technology. We are in favor of developing the systems according to the needs of the country, society and time. Now India Post Payments Bank has also joined in the series of several similar efforts like GST, Aadhaar and Digital India. Our government is not like that that will leave old systems as it is but it has been doing the job of reforming, performing and transforming them. And with the help of a changing technology, and mediums too have changed, even if they have changed but the objective of both of them is still the same. It’s true that email has replaced the inland letter but objective of both are still the same. And therefore the technology which had challenged the post offices, because people were apprehensive that now whether the department of post will survive or not? Whether postmen will survive or not? Whether their jobs will be safe or not? All these issues were discussed and the challenge which was posed by the technology, we have been moving ahead by making the same technology as the basis of converting that challenge into an opportunity.
India’s department of post has the kind of system in the country which has more than 1.5 lakh post offices and 1.25 lakh out of the total are located in village areas. More than three lakh postmen and rural post volunteers have been connected to the people of the country. Our government has taken upon itself to connect such a vast network with technology to convert it into the most powerful system for service delivery in the 21st century. Now the postman has a smart phone in one hand and he has a digital device in his bag.
Friends,
This post payments bank that is symbol of unity, equity, inclusion, service and trust, now has the capacity to strengthen not only the banking system of the country but also to strengthen the system of digital payments. Even the most ordinary businessman can open its current account to run its business in addition to opening a saving account. The workers of UP and Bihar who have been working in Mumbai or Bengaluru could now easily send money to their families. He will not have to go anywhere to pay his electricity and phone bills. Not only this, the Post Payments Bank will be able to offer loans by entering into partnership with other banks and financial institutions. It will also offer services like investment and insurance to its customers. The most important feature is that all the services will be provided by the postman at your doorstep in addition to bank counters.
The postman will also be able to resolve the issues in the difficulties faced by the customers in communicating with the bank or while doing digital transactions with the bank. How much money you had deposited, how much interest you have earned, what’s the balance in your account, now all these things will be told to you at your home by the postman. This is not just a bank but it is going to turn out to be a trusted partner of the village, and of the poor and middle class people.
Now you need not remember your bank account or account number or to tell the password to anyone. All the procedures of this bank have been made very simple given the rural circumstances. That is why your account will be opened in the new bank in a few minutes. And our minister informed that it would take one minute at maximum. And a QR card will also be given to the account holder, it has been given to me just now because my account has also been opened. The one who does not siphon off that person too keeps a bank account.
You people would be surprised to know that in my life I never had a bank account. However, when I was studying in a school then Dena Bank had a scheme, they used to provide a piggy bank to children and used to open an account. So they also gave it to me but mine remain empty always. However, later I left the village but the bank account continued to exist and bank staff was required to carry it forward every year. Bank people were looking for me to close down my account but my whereabouts were not certain. After nearly 32 years they came to know that I was about to visit some place that day so they came there and asked me to sign on the paper so that they can close the account. However, when I was elected an MLA in Gujarat then the salary was paid so I had to open a bank account. Prior to that I had no relations with them and today Post Bank people have opened one more account.
See, it’s not like that the postman only delivers the mail. And those families were not educated then the postman used to open the letter and read them the entire content. And then that old mother used to ask that she wanted to write back to her son and she will ask the postman to bring a post card the next day so that she can communicate her reply to the postman. And the next day the postman used to bring a postcard, the mother used to narrate her reply and he used to write. It means what an affectionate system. Now my postman will again do the same thing through technology. It means a QR Card, impression of your finger and the statement of the postman, they are going to make banking easier and allay any apprehension.
Friends,
IPPB is also going to turn out to be a big facility for the farmers because of the strongest network that it has in villages. Several schemes like Pradhan Mantri Fasal Bima Yojana will be specially strengthened because of it. Whether we need to settle the claim in time or we need to link farmers with the scheme, this bank is certainly going to be beneficial. Now with the start of Post Payments Bank the claim amount under the schemes will be disbursed at the doorsteps. In addition to this, this bank will also provide momentum to the movement of saving money in the name of daughters under Sukanya Sammriddhi Yojana.
Brothers and sisters,
Our government has brought the banks of the country to the doorsteps of the poor. Otherwise, there was such a situation until four-five years ago that most of the funds of these banks were reserved for the select few people who were close to one family. You just think that, after independence and till 2008, it means from 1947 to 2008, all the banks of our country advanced loans worth Rs. 18 lakh crore. Total Rs. 18 lakh crore during this entire period but after 2008, in just six years, it means what happened in sixty years and what happened in six years! Rs. 18 lakh crore in sixty years and then within next six years this amount swelled to Rs. 52 lakh crore. It was like, “Please take it. Later Modi will come. He will protest, please take it away.”
It means the amount of loan that was disbursed by the banks of the country after independence, the same amount of loan was given during the six years of previous government. It was like, “You are happy, I am happy. And how these loans were given.” This technology has just come to our country. At that time there was a special tradition. The tradition of ‘Phone Banking’.
And that kind of phone banking was prevalent at that time. If ‘Naamdars’  made a call then the banking sector and those people who sanctioned the loans, sanctioned them due to those phone calls…loans were eventually sanctioned. Those rich…big businessmen needed a loan…they used to arrange a phone call to bank from powerful people. And the banking people will sanction loans worth billions and trillions of rupees to that individual or company in no time. Those phone calls from ‘Naamdars’  powerful names were above all the rules and regulation. The ‘Phone Banking’ practiced by Congress and their ‘Naamdars’  have caused a lot of damage to the country. Now this question also arises that why banks did not refuse to entertain this kind of ‘Phone Banking’.
Friends,
You people are aware that at that time the most of appointments in banks were made because of the blessings of those ‘powerful individuals’. It was because of influence of ‘Naamdars’  that even the top officials of the banking sector were not able to refuse to give loans. This was the biggest reason behind advancing twice the loan in the six years. Despite banks being aware about this thing that the recovery of loans advanced by them will be difficult, they knew that they must give loans to some ‘privileged people’.
They knew that it will not be recovered but they were forced to comply. It was not only this, when this kind of people started defaulting in repayments of loan then again pressure was mounted on banks to advance ‘fresh loans’ to them. And all these irregularities were carried out in the names of restructuring of the loans.
It means if a loan has been obtained then the due amount was passed on to the certain people. And now since that person has been seeking another loan so give him another loan, so the response was: ‘I will do that.’
That person gives loan, this person gives loan, this and that person give loan, and this was the cycle which was constantly followed. And those people who have been involved in this kind of irregularities, they knew it very well that they will be eventually exposed some day so they resorted to one more irregularity, one more conspiracy was hatched from that time itself to conceal the correct data from the country about the amount of loans given by the banks that was not being repaid. The country was kept in the dark. It means those lakhs and crores of rupees that were stuck, that amount was not properly declared in an appropriate manner on papers. It was concealed. A falsehood was committed on the country that the amount of loans which is to be recovered is just two lakh crore rupees and it was not made clear whether it will be repaid or not. At the time when large scams were getting exposed in the country, then the previous government had put its entire effort in concealing this biggest scam committed by them. And certain people in the banks were helping these ‘Naamdars’  in this thing too.
When our government was formed in 2014 then the complete picture started to emerge. Then the banks were sternly told to provide the complete information about the amount of money given by them which was stuck, this kind of dealings, and the amount which was yet to be recovered through a proper assessment. They were told to provide complete information. The money which was given in those six years, the truth about them is that the correct amount which was claimed to be Rs. 2 or 2.5 lakh crore was actually Rs. 9 lakh crore.
Today, the country will be surprised to hear about this thing that what a big fraud was committed on it. How many lies were spread before the country? This amount is constantly going up day by day because of the levy of interest on daily basis. In the coming days, this amount will further go up because interest will be levied in any case, the banks will complete their paper work in any case.
Friends,
We have realized this thing soon after formation of our government in 2014 that this ‘Naamdar’  has left by leaving such a landmine for the economy that if the truth about this thing was told to the country and the world at that time then it would have caused such an explosion that perhaps it would have become difficult to manage the economy.
That is why we had been working day and night to work in an extremely careful manner, in a very detailed manner to bring the country out of this crisis.
Brothers and sisters,
Our government has brought the truth about NPA, has brought about the scams of the previous government before the country. Not only we have diagnosed the problem but we have also searched the reasons behind it and we have also taken several steps to cure the disease. In the last years, every loans worth more than Rs. 50 crore has been reviewed. It has been ensured that all the conditions of the loans are strictly adhered to.
We have amended the laws. We have decided to merge banks. We encouraged professional approach in the banking sector. Reforms have been carried out constantly to improve the public sector banks. Fugitive Economic Offenders Bill; the process to seize the properties of absconders have been started. Arrangements have also been made so that these absconders cannot take away a part of their properties. Government has decided to keep the details of the passports of big borrowers in its custody so that it is not easy for them to run away from the country.
The recovery of NPAs has started through bankruptcy code and NCLT. Action has been taken at a fast speed against those twelve large defaulters who were given loans before 2014, the amount of NPA in these cases is nearly Rs. 1.75 lakh crore. Now the results are also becoming visible of these steps. Similarly, in addition to these 12, there are 27 others, they too have big loan accounts that have NPAs of nearly Rs. 1 lakh crore. The arrangements are being made in a very strong manner to recover this amount. And those who were under the impression that because of the cooperation and grace of those ‘Naamdars’  that they will always be able to keep the lakhs and crores of rupees with them, those who thought that it will always be incoming, now the money has also started to go out from those people’s accounts.
There is a new change in the country, a new culture is there, and the culture is changing. Earlier the bank used to run after them. Now we have created such a web of laws that they themselves are running to repay the loans. It's like, “Brother, please do something, please accept part payment, I will pay some more the next month. Somebody, please save me.” Now these people themselves are running after the bank. They have been forced to return the money.
In addition to the banking system that is made stronger with each passing day, now the grip of enforcement agencies is being further tightened on these people. And I would like to assure the country once again that out of all these big loans there is not a single loan which is being sanctioned during this government. We have constantly changed the situation of the banks and directions given to them after assuming the office. And today’s program is also an important step in that direction. Earlier loans were given to the big people with the blessings of ‘Naamdars’ , now the job of giving bank loans to the poor people has been shifted into the hands of our postman.
In the last four years, the loans worth more than Rs. 13 lakh crore has been given to the poor and middle class youth under the Mudra scheme for self-employment. Jan-Dhan accounts of more than 32 crore poor people have been opened. Our government has provided the safety cover of insurance and pension to more than 21 crore poor people on payment of only one rupee per month and 90 paise per day premium.
Brothers and sisters,
Our government has diffused the landmine on which our country’s economy was placed by the ‘Naamdars’ .Today the country is full of a new confidence. On the one hand, India and our players, have given their best ever performance, on the other the country has got a new medal as per the newly released data of economic growth. The new data which have been released, they are a proof of strengthening of the country’s economy, they are a proof of confidence being instilled in it. Development taking place at a rate of 8.2% reflects the growing strength of Indian economy. This presents a brighter image of a New India. Not only these numbers are good but they are much more than the numbers anticipated by the experts.
When the country moves in the right direction, when the intent is right then we get to see this kind of positive results.
Friends,
It has become possible due to the hard work, dedication and commitment of 1.25 billion people. Our youth, our women, our farmers, our entrepreneurs, our workers, this is the result of the hard work by all of us, this is the result of the hard work by all of them that the country is developing at a rapid pace today.
Today, not only India is the world’s fastest growing economy but it has also become the fastest country for eradicating poverty. GDP numbers are a testimony to the fact that India has been moving forward on its own strength due the dedication and struggle by 1.25 billion Indians.
I once again would like to tell the country that whatever amount of the banks have been stuck because of ‘Naamdars’  we are going to get it back in any case. It will be used for empowering the poorest of the poor person of the country. India Post Payments Bank will play an important role in this thing.
Banking, Social Safety Schemes, Direct Benefit Transfer, Passport Seva, Online Shopping and several other such schemes to reach to every village and every household in an effective way will be done through IPPB and Post Office.
It means that our postman, India Post Payments Bank are going to present themselves in a new form before the country to further strengthen the path of Sabka Sath-Sabka Vikas. And I am happy that more than three lakh Dak Sevaks are fully ready to take this huge mission to every village, to every house, to farmers and to small traders. Dak Sevaks will not only help people in carrying out digital transactions but they will also provide them training so that they themselves can carry out banking and digital transactions from their phones. So in this manner, our Dak Babus will not only become bankers but they are going to become digital teachers too.
Government has also taken several important decisions given the role played by these people in service to the nation. Government has fulfilled the old demand related to wages and perks of rural Dak Sevaks in this July. It has been ensured that it will benefit more than 2.5 lakh rural Dak Sevaks of the country. Earlier, there were a dozen slabs in the time related perks that were paid to them. Now they have been reduced to three. In addition to this, the perks which were paid to them they were in the range of Rs. 2,000 to Rs. 4,000, now they have been enhanced to Rs. 10,000 to Rs. 14,000. Given the difficult situation that they have been working in, a new perk has been started. It is for women rural Dak Sevaks, it is the provision for a maternity leave of 180 days, it means six months, with full payment has been provided for.
Average wages of rural Dak Sevaks have gone up by more than 50% due to the efforts made by the government. I have been told that online recruitment process has already been started to fill the vacant posts of Dak Sevaks. These decisions will be helpful in further strengthening of our strongest representative of India Post Payments Bank.
Friends,
Today, this service is taking off in more than three thousand places in our country. And as Manoj Sinha Ji informed that in the next few months more than 1.5 lakh post offices will be linked to this service.
This new system of a New India will also get support from the strong telecom infrastructure of the country. I conclude my speech by conveying my best wishes to the people of the country for this new system, for a new bank, and for a new facility and also by once again expressing my respect and regard for all our colleagues in the postal service.
Once again I convey my best wishes to every employee of the postal department and to the every person connected with this bank and I sincerely thank them.
And I also convey my best wishes to Manoj Sinha Ji as his IIT background helped me a lot in this thing, technology has helped me a lot and I also thank Mr. Minister for providing leadership to this project.
Thank you.